GovernmentCIO, a provider of high-end technology and digital solutions to the federal health IT services market, announced it has agreed to acquire Salient CRGT, a provider of data analytics, cloud, agile software development, cybersecurity and infrastructure solutions.
GovernmentCIO is backed by Welsh, Carson, Anderson & Stowe.
The combination of GovernmentCIO and Salient CRGT will bring together two complementary providers of government IT solutions. GovernmentCIO CEO Jim Brabston will lead the combined company, and Salient CRGT CEO Tom Ferrando will join the board of directors.
Long-time industry veteran Phil Nolan will become chairman of the combined company, which will be named GovernmentCIO once the transaction is closed.
The combined company will have more than 2,200 employees and revenues of approximately $700 million in 2021.
“We’re thrilled to partner with SCRGT and its outstanding team, who share our commitment to delivering high-value solutions that make positive impacts on missions and lives,” Brabston said.
Ferrando said he was excited to join forces with GovernmentCIO.
“We have a strong cultural and strategic fit with each other and the combination will take our company to the next level as part of a premier, scaled platform,” he said.
Nolan said the deal is a validation of Salient CRGT’s business-building strategy.
“I have long known and greatly admire GovernmentCIO and its leadership team and am confident that the combination of our complementary teams and deep network of long-term relationships will enable us to capitalize on the many growth opportunities ahead as a stronger, unified company,” he added.
The transaction is expected to close in 2021’s third quarter. GovernmentCIO and WCAS are being represented by DC Advisory as financial adviser and Kirkland & Ellis LLP as legal counsel. Salient CRGT is being represented by Robert W. Baird & Co. and Guggenheim Securities, LLC as financial advisers and Kirkland & Ellis LLP and Willkie, Farr & Gallagher LLP.